U.S. stock index futures surged on Thursday, buoyed by robust gains in semiconductor stocks such as Micron Technology.
Investor confidence was bolstered by the Federal Reserve's commitment to its plan for three rate cuts this year.
The previous day, Wall Street experienced a significant rally, with the S&P 500 reaching a new record high, following the Fed's decision to maintain current borrowing costs.
The Fed also signaled its intention to reduce interest rates by three-quarters of a percentage point by the end of 2024.
The CME FedWatch tool indicated a 76.4% probability of a rate cut in June, up from around 56% earlier in the week.
Sam Stovall, chief investment strategist at CFRA, commented, "The Federal Open Market Committee (FOMC) meeting concluded on a more dovish tone than even the optimistic marketplace had anticipated.
The Street went into this meeting expecting three cuts this year, with the first coming by mid-year, and that is what appears to have been communicated, as Chair Powell did not push back against market expectations for a rate cut in June."
Micron Technology saw a significant pre-market surge of 16.8% after reporting an unexpected quarterly profit and forecasting third-quarter revenue above estimates.
Other semiconductor companies such as Intel and Nvidia also saw gains of more than 1%, while Western Digital rose by 6%.
Investors were also eagerly anticipating data on weekly jobless claims and business activity later in the day.
As of 05:00 a.m. ET, Dow e-minis were up 116 points, or 0.29%, S&P 500 e-minis were up 21.75 points, or 0.41%, and Nasdaq 100 e-minis were up 138.25 points, or 0.75%.
Most rate-sensitive mega-cap growth and technology stocks also experienced gains in pre-market trading.
However, Apple saw a decline of 1.1% following reports that the U.S. Department of Justice is preparing to sue the company for allegedly violating antitrust laws.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta)